Did you know over 19 million taxpayers submitted valid tax extensions for the 2022 tax season? According to the IRS, millions of Americans annually file federal income tax extensions.


A tax extension is considered valid if filed before the original tax deadline, which is mid-April annually. If you file a tax extension for the 2023 tax season, the deadline for filing your tax return is October 16. Typically, the tax deadline is October 15, but since that falls on a weekend in 2023, you get an extra day.


How do I file an extension for taxes?


You can file an extension for your taxes by submitting IRS Form 4868 with the Internal Revenue Service (IRS) online or by mail. This must be done before the last day for filing taxes. Filing an extension for your taxes gives you additional months to prepare your tax return, regardless of why you need the extra time.


What is a tax extension?


Many people think a tax extension is an extension of the deadline for their tax liability. It is important to note that filing an extension gives you more time to finish the paperwork, not additional time to pay your liability. 

Your tax payment is due on the tax deadline, typically on April 15 or the next business day if it falls on a weekend or holiday.


  • If you know, you’ll be getting a refund. You won’t need to worry about paying when filing a tax extension. The earlier you file your return, the earlier you’ll receive your refund.


  • If you think you’ll owe, you should estimate what you’ll owe (see below) and pay the amount due when you file Form 4868.


What are the advantages of filing for a tax extension?


Filing a tax extension is a good idea if you are filing it for the right reasons. Although, there is no penalty for filing a tax extension. Failing to file altogether may cost you. Here are some essential notes on filing an extension:


  • An extension of time to file your return does not grant you any extension to pay your taxes. 


  • You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.


You might be subject to a late payment penalty if you don’t pay at least 90% of your owed. The penalty is usually half of 1% of the amount owed each month, up to a maximum of 25%.


  • You must file your extension request by the regular due date of your return.


  • You’ll be subject to a late filing penalty if you don’t file your return or Form 4868 by the tax filing deadline for the given tax year. The penalty is usually 5% of the amount you owe each month, up to a maximum of 25%.


  • Taxpayers in certain disaster areas do not need to submit an extension electronically or on paper. Check to see if you qualify and the due date of your return.


After you file the extension, you’ll have until October 15 to gather your documents and finish your filing. When you complete your return, you should include the amount you’ve already paid in the payments section of your Form 1040.


Estess CPAs specialize in serving the needs of small businesses with professional accounting, bookkeeping, tax planning, and payroll services. We help you achieve your financial goals through proper planning. Contact Estess CPAs today to schedule your free 30-minute consultation.


Estess & Associates, LLC

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Belle Chasse, LA 70037

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Estess & Company, LLC

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Luling, LA 70070

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